Frasers Centrepoint set to list new property trust

SINGAPORE – Frasers Centrepoint yesterday said it has applied to list a new property trust holding Australian assets in the Republic, but an eventual listing will be subject to several factors, including market conditions.

The property developer said applications have been made to the various regulatory authorities, including the Singapore Exchange (SGX) and Monetary Authority of Singapore (MAS) to list a real estate investment trust (REIT) holding a portfolio of Australian logistics and industrial assets.

It added, however, that the proposed initial public offering (IPO) is subject to factors such as market conditions, the required regulatory and other approvals being obtained, and the execution of definitive agreements by the relevant parties.

Frasers Centrepoint reiterated no decision has been made over whether the transaction will take place, with “no certainty” it will proceed with the IPO. It said an announcement would be made if there are further developments.

The Australian division of Frasers Centrepoint — Frasers Property Australia (FPA) — was previously known as Australand. One of Australia’s leading property groups, it has been involved in property development for more than 90 years. FPA’s current operations are focused on investment in income-producing office and industrial properties, commercial and industrial property development and management, and residential development (including land, housing and apartments). It has offices in Sydney, Melbourne, Brisbane and Perth. It also maintains a residential sales office in Hong Kong.

The firm already has three REITs listed on SGX.

Frasers Centrepoint is due to report results for its second quarter to March 31 today. For its first quarter to December 31, 2015, it reported a 38 per cent drop in net profit before fair value change and exceptional items to S$90.3 million from S$145.6 million in the same period a year earlier. It attributed the fall to timing differences in project completions in Australia and China, and the tapering off of development profit from Singapore projects that were completed and substantially sold.